Rising Housing Regulatory Costs Featured In Pioneer Press

On Sunday, the Pioneer Press published an article highlighting the staggering costs Minnesota’s housing regulations placed on Minnesota homeowners. The article, for which BATC provided multiple interviews and data points over the past 15 months, addresses the effect regulations have on home affordability, including:

The snowball effect of multiple costly state and local regulations;

How, excluding coastal markets, the Twin Cities is the costliest real estate market in the U.S.;

Despite the high costs, special interest groups and regulatory agencies are pushing for more costly regulations.

Credit: Pioneer Press

BATC members Greg Houston of Bald Eagle Builders, Bob McDonald of McDonald Construction, and Len Pratt of Pratt Homes were featured in the article. Houston highlighted how code changes for plumbing, heating and insulation in 2015 added $15,000 in additional costs to homeowners. Pratt pointed out the high cost of land within MUSA, which can run as much as $100,000 for one-third-acre lots. McDonald said the regulatory culture in Minnesota will keep housing costs high.

Bob Michels, BATC president, was also featured, saying lower and middle income households are hit hardest by the high regulatory costs.

BATC is currently seeking solutions to Minnesota’s costly regulatory environment though legislation. HF 1001/SF 745 would allow the Legislature to review any housing-related regulation that costs homeowners more than $1,000. State Sen. Mary Kiffmeyer (R-Big Lake) and Rep. Bob Vogel (R-Elko-New Market) have authored BATC-leg legislation addressing this issues. These bills are a part of the Minnesota Homeownership Initiative, BATC’s partnership with the Minnesota REALTORS.

This legislation is also included in the House of Representatives Jobs bill and Senate State Government Finance bill, both of which passed before the legislature adjourned for its mid-session break.